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BusinessRefinery.com/ barcodesThe sales compensation plans for income producers should be simple: a fixed commission rate (flat) for all sales revenue. In some industries, the commission rate for income producers is so well established that few in sales management would even presume to question the rate, let alone alter it. Senior management simply accepts the rate for the income producers as a known constant built right into business planning assumptions of the company s financial model. However, like any economic statement, market forces have an ongoing influence on the development and refinement of income producer commission rates. No one should assume that commission rates are constant and cannot be changed. As we examined earlier, income producers are independent sellers who have access to customers.Their economic value is their ability to reach and influence buyers. Companies pay for this access by paying a commission for sales results. Most income producers pay plans feature a flat (unchanging) commission rate. It s not unusual for the income producer to be a nonpayroll employee paid as a contract worker or separate business entity. Regardless of the legal relationship, there is a rational basis for setting and evaluating the commission rates paid to income producers. Income producer commission rates vary by industry.While this is not an exact science, the trend is clear. Industries with high volumes per income producer tend to have lower commission rates, and industries with lower volumes per producer tend to have higher commission rates. Management should constantly examine the expected volumes to determine if the commission rates are still effective, too high, or too low. In Figure 6-5 we see that commission rates differ by industry depending on the expected volume per income producer.
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FIGURE 11.22.
When this version is used, the last line in the output will be
Once you have an initial assessment of the Seven learner s self-mastery level, read the recommended approaches appropriate to that level and select those you believe will be most effective for the learner.
Expand or collapse the hierarchy
3:
Process planning Information feedback Visualization Communication Process parameters Simulation
Ill 19-2
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